August 10th, 2024

Apple adds nearly endless 20 percent fee for developers in latest EU update

Apple updated its App Store rules in the EU, allowing external payment links but imposing a new fee structure, prompting criticism from developers and an ongoing EU investigation into compliance.

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Apple adds nearly endless 20 percent fee for developers in latest EU update

Apple has updated its App Store rules in the EU following regulatory scrutiny under the Digital Markets Act (DMA). The changes allow developers to link to external payment options, but they will incur a new fee structure that requires them to pay Apple a commission on sales made across any platform for one year after a user installs the app. This includes a 20 percent "store services fee" for apps only available on the App Store and a 10 percent fee for those that support third-party app stores. Additionally, there is a 5 percent "initial acquisition fee" on digital goods purchased within the same timeframe. Critics, including Epic Games' CEO Tim Sweeney, argue that these fees make it economically unfeasible for developers to distribute apps through both the App Store and competing platforms. Apple defends the fees as reflective of the value its App Store provides. The EU is currently investigating Apple's practices, including its Core Technology Fee, which imposes charges on developers using alternative app stores. While Apple has made some concessions, the new rules still present significant challenges for developers seeking to operate outside of Apple's ecosystem.

- Apple has introduced a new fee structure for EU developers linking to external payment options.

- Developers will face up to a 25 percent commission on sales made within a year of app installation.

- Critics argue the fees make it difficult for developers to use both the App Store and alternative platforms.

- The EU is investigating Apple's compliance with the Digital Markets Act.

- Apple claims the fees reflect the value provided by its App Store services.

Link Icon 7 comments
By @RadixDLT - 5 months
Apple: “If you’re using our marketplace, play by our rules. You’re always free to leave.”

EU: “Sure, if you’re in our market, play by our rules. You’re always free to leave.”

By @barelysapient - 5 months
Looks like Apple is forcing the question: Will the EU compel Apple to give away or license their software, apis, and technology at some price other than Apple sets?

If the EU takes that position, I’d have to think the US and other governments would start to look at EU IP the same way. Something to be regulated and taken at a price that local government prefers.

By @IndySun - 5 months
While this looks like the EU tying itself up in knots, it's likely Apple will 'take another look' at this very soon and even reverse it before the year is out.
By @mejutoco - 5 months
I think forcing them to support pwa installs could be even better and, ironically, match the original vision of steve jobs better, with mostly webapps.
By @ChrisArchitect - 5 months